Pursuant to the terms of the letter of intent, the company will merge into a wholly-owned subsidiary of Eternal Energy, which will be the surviving entity.
American Eagle currently expects that it will seek to enter into a definitive agreement shortly after each company files its Annual Report on Form 10-K for its most recent fiscal year.
The company currently expects that, immediately following the closing of the possible merger, the resulting company, through a reverse split, will reduce the number of outstanding shares of common stock that would result from the merger transaction.
The ratio of stockholdings between the companies at the closing of the possible merger, exclusive of any presently outstanding options, is currently anticipated to be 80% to American Eagle’s legacy stockholders and 20% to the legacy stockholders of Eternal Energy.
